Financial Management quiz for MBA students

Quick assessment test for MBA in finance students. 10 MCQ quiz questions to assess your finance knowledge and prepare for the exams and interview.

Instructions

Topic- Financial management

The test consists of 10 questions.

No negative marking for this test.

No Time limit

The pass percentage is 70%

The correct answer with a description will be displayed after the answer has been marked.

Submit the test to calculate your score once you are done with all the questions.

Complexity Level- Easy

Q1: Which of the following is NOT a component of working capital?

Cash

Accounts receivable

Fixed assets

Inventory

Q2: What is the operating cycle in a manufacturing company?

The time between the purchase of raw materials and the collection of cash from the sale of finished goods

The process of purchasing inventory

The time taken to manufacture goods

The collection period of accounts payable

Q3: Which of the following is considered a cash equivalent?

Accounts receivable

Short-term investments

Long-term debt

Inventories

Q4: Which of the following best describes the dividend policy?

A company's strategy for deciding how much of its profits to distribute to shareholders.

A company's strategy for deciding acquisitions and mergers.

A company's strategy for deciding buyback of shares.

A company's strategy for deciding the selling of assets to meet short-term goals.

Q5: What do you understand by risk-return trade-off?

Selling of assets to incur cash flow.

The amount of capital expenditure on a new venture.

The relationship between the amount of risk taken and the potential return on an investment

None of the above

Q6: A financial ratio that measures how much a company can increase its operating income by increasing revenue is called ______

Price to earning ratio

EBITDA

Operating Leverage

Earning per share

Q7: Which of the following best describes the cost of capital?

The return expected by investors for providing equity financing

The minimum rate of return or profit a company must earn before generating value

The interest rate paid on debt

It is the amount left after deducting working capital from the fixed asset.

Q8: EBITDA stands for _____

Earnings after Interest, Taxes, Depreciation, and Amortization

Earnings before Interest, Taxes, Dividends, and Amortization

Earnings before Interest, Taxes, Depreciation, and Amortization

Earnings before Interest, Taxes, Dividends, and Acquition

Q9: The money a company's customers owe for goods or services they have received but not yet paid for, is called _____

Net Loss

Cash outflow

Debt to equity

Accounts receivable

Q10: The amount of money that would be returned to shareholders if a company were liquidated and all debts paid

Non performing asset

Net Liability

Shareholders' equity

Net debt to be paid

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Financial Management quiz for MBA students

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